Arlington, VA – June 30, 2011 – (RealEstateRama) — Thayer Long, president and CEO of the Manufactured Housing Institute, issued the following statement on in the IBIS World, Inc. research report falsely characterizing the state of the manufactured housing industry.
“Since 1989, manufactured housing has accounted for 21% of all new homes sold. Due to the most significant economic and housing crisis in generations, over the past five years the pace of new manufactured homes sold in the US has declined by 57%.
However, the pace of new single family site-built homes sold in the US has declined by 76% since its peak in March 2005. Buyers purchased 322,000 new site-built homes in 2010, the fewest annual total on record going back 47 years.
Over the past five years, excesses in the site-built housing market contributed to one of the greatest economic disasters in generations. Buyers assumed more debt and more house than they could afford, and this behavior was supported by the marketplace.
Manufactured housing, having undergone its own subprime bubble over a decade ago, learned these lessons well. As a result, manufactured housing remains the best housing value proposition in the marketplace, a feat accomplished in spite of tougher self-imposed industry lending standards. Over 19 millions Americans live in a manufactured home, and the market share of manufactured housing is back on the rise over the past two years, with shipments increasing in 3 of the past 4 quarters.
Americans can realize the dream of owning their home at an affordable price, without sacrificing quality or the level of amenities they desire. The manufactured housing industry is very much alive, and very much here to stay.”
The Manufactured Housing Institute is the national trade association for manufactured and modular housing industries, representing all segments of the industries before Congress and the Federal government. From its Washington, D.C. area headquarters, MHI actively works to promote fair laws and regulation for all MHI members and the industry. For more information on MHI, visit www.manufacturedhousing.org
Comments
The manufactured housing industry is dying because of a lack of customer service priorities. Expectations of growth will be stifled unless the builders start to take responsibility for their product installation. The vast majority of dissatisfaction with manufactured homes comes from poor installation practices. The builders have been able to dodge their responsibility to the home buyer by insisting that installation be part of the operations handled by the dealer. Leaving the homeowner at the mercy of less than honorable sales operators when somthing goes wrong. Change the HUD codee to make builders responsable for covering the installation in theit warranty and you will see growth. If not the manufactured housing business. as we know it will, continue to wither and die
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The industry that this article is referring to is divided into two IBISWorld reports. The IBISWorld Prefabricated Home Manufacturing report agrees with the Manufactured Housing institute. The manufacturers of these products (including manufactured homes, modular homes and sections for prefabricated wood buildings) are expected to experience an average of 6.5% sales growth in the next five years. Modular home sales are projected to rise at a faster rate compared to manufactured homes. Modular homes currently account for 35.2% of industry revenue, but this share is projected to rise to 42.1% by 2016.
The IBISWorld Manufactured Home Dealers report refers to firms that primarily retail new and used manufactured homes; this excludes modular home sales and companies who mainly produce manufactured homes but also retail such as Clayton Homes Inc. This industry is expected to grow at a slow pace because of rising competition from manufacturers who open their own retail shops and can easily make their prices lower than small dealers. Also the industry will suffer from consumers demanding more modular homes which is not included in this industry.